Transcript for Pharmaceutical CEO Martin Shkreli Arrested for Securities Fraud
We move onto other news tonight and to another case we're following peking headlines. What authorities call a pharmaceutical scheme. The young CEO who set awful a fire storm before, after liking the price of a life-saving drug 4,000 times overnight. Martin Shkreli arrested for securities fraud. Hours later, released on bail. ABC's linsey Davis on what he's accused of doing now. Reporter: The 32-year-old known as the bad boy of farm suit cams infamous for increasing the price of a life-saving drug from $13.50 to $750 a tablet, arrested this morning on unrelated security fraud charges. Shkreli essentially ran his companies like a Ponzi scheme. Reporter: According to the indictment, martin this cell little started a hedge fund and got millions from investors. When he lost their money through a series of bad trades, he took money from new investors to pay off old ones. Then, he took a company called retrophin public. The company acquired old drugs and sold them for higher prices. According to investigators, he and the company's attorney used that company's money to pay off his hedge fund investors. The two defendants Shkreli and available, could use retrophin for his personal piggy bank. One of the headlines saying you are the most hated man in America. He assured us he was going to dramatically cut the cost that had caused such a ruckus. I'm not a greedy person. Reporter: He cut it to the equivalent of $375 a pill. Still, a 2,000% increase over the original cost. Online, Shkreli has posted hours of video of himself. I don't really care about people hating me. Reporter: That devil may care attitude not as apparent tonight as he left this federal courthouse after his arraignment. He and the company attorney both pled not guilty. And the account of bond he paid to walk out of jail? $5 million. David? Linzsey Davis with us tonight. Thank you. Now to the race for 2016
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